Organizational Challenges

Organizational Challenges for Today

Housekeeping

  • Personality Type Website:
    • Access the website and complete the personality assessment.
    • Submit the 4-letter Code by Wed May 21 at 8 pm (worth 5% of the mark).
  • Take Home Activity 1 Ethics is due Thurs May 22nd.
  • Optional Bonus Assignment:
    • Create an e-signature.
    • Due Thurs May 22 at 11:59 pm.

Organizational Challenges: Lesson Objectives

  • Describe factors that affect organizations in:
    • Global economy
    • Cultural differences in the workplace
    • Diverse groups within the business community
    • Technological advances impact on the workforce
    • The role of ethics, character, and personal integrity
    • 5 issues that pose ethical dilemmas

Challenges of Competing Globally

  • Factors:
    • Political: Trade/protectionism, domestic and foreign policy, economic issues, political party affiliations, national security.
    • Cultural: Population demographics, education, employment, gender issues, religion, human rights.
    • Social: Hofstede’s Cultural Dimensions.

Social & Political Changes

  • Organizations have had to change the way they conduct business to encourage Global thinking.
  • Chinese business ventures are attractive and lucrative to North American companies.
  • China has a distinct way of doing business; therefore, entering into relationships with the Chinese requires adjusting to these methods.
  • Guanxi: building networks for social exchange.
    • Example: KFC China is a joint venture; 60% KFC owned, and 40% Chinese gov’t bodies.
  • European Union: 15 nations into a single market, removing trade barriers.
  • NAFTA: North American Free Trade Agreement, between Canada, USA, Mexico renegotiated and renamed in 2018 by Trump:
    • USMCA - US-Mexico-Canada Agreement (America first principles).

Cultural Differences

  • “Dig below the surface of visible artifacts and uncover the basic underlying assumptions at the core of the culture.” - Edgar Schein.
  • Microcultural differences: differences within a culture.
    • e.g., education from public vs. private institutions with British “A” level testing.
  • Differences in symbols/gestures and body language are often misinterpreted for the worst.
  • In Canada, we refer to an Eraser, in other countries it’s a Rubber; however, in Canada, a rubber is a condom.
  • These differences are often more impactful than age, gender, profession, or position within the workforce - Hofstede’s Studies.

Hofstede’s Model

  • Describes the degree to which people in society are integrated into groups.
  • Relates to the acceptance of unequal distribution of power.
  • Describes a society’s tolerance for the unknown.
  • Describes gender characteristics that differ between the sexes.
  • Oriented toward the future (long-term orientation) or toward the past and present (short-term orientation).
  • Newest dimension (2010) gratification is needed or curbed (restrained) Gen Y.

Cultural Differences - Work-Related Attitudes

Individualistic Cultures
  • Self is separate, individuals should be independent.
  • Individual should take care of him/herself and immediate family.
  • Friends are based on shared interests and activities.
  • Reward for individual achievement and initiative.
  • High value on autonomy, individual security, equality.
Collectivistic Cultures
  • People belong to extended families or a group.
  • Person should take care of extended family before self.
  • Emphasis on belonging to a very few permanent in-groups.
  • Reward for contribution to group goals.
  • High value on duty, order, tradition, age, group security, status, and hierarchy.

Individualistic or Collectivistic

  • Individualistic:

    • “Self-Made Man” (I)
    • “I” (I)
    • “dog eat dog” (I)
    • Independent (I)
    • Competitive (I)
    • Speaks Direct, no beating around the bush (I)

  • Collectivistic:

    • “Power in numbers” (C)
    • “We” (C)
    • Work together to benefit all (C)
    • Sense of belonging (C)
    • Traditionalists (C)
    • Feeling indebted to others (C)
    • Desire is to build strong connections (C)

Cultural Differences: Work-Related Attitudes

Power Distance
  • High Power Distance:
    • Clear separation between Boss and Employee status.
    • Bosses are afforded more power, titles are used, formality in the environment, authority seldom bypassed.
  • Low Power Distance:
    • Equality is minimized, less threatened by people in power, more willing to trust.
    • Managers & Employees judge each other equally.
Uncertainty Avoidance
  • High Uncertainty Avoidance:
    • Concerned with security, avoid conflict.
    • Prefer consensus, conformity.
    • Struggle with ambiguity.
  • Low Uncertainty Avoidance:
    • Risk takers, comfortable with individual differences.
    • Conflict is comfortable and constructive.
    • Accept dissenting viewpoints.

Cultural Differences: Work-Related Attitudes

Masculine/Feminine
  • Masculine Cultures:
    • Assertiveness and materialism valued.
    • Be tough, decisive as men.
    • Expect women to be nurturing, modest, tender.
    • Money, position important; performance and achievement admired.
  • Feminine Cultures:
    • Focus on relationships and concern for others.
    • Both men and women to be assertive and nurturing, quality, people, and the workplace environment are prioritized.
Time Orientation
  • Long-term / Short-term
    • Long-Term: Future-oriented.
    • Short-Term: Past and Present focus.

Cultural Differences: Work-Related Attitudes

Indulgence vs. Restraint
  • Indulgent cultures:
    • Tend to allow relatively free gratification of human desires - enjoy life, have fun.
  • Restrained cultures:
    • Such gratification needs to be curbed, prefer regulating strict rules.

Hofstede's Model: Six Dimensions

  • Comparison of Hofstede's scores between Canada, Mexico, and the United States is shown in Figure 2.2 with dimensions:
    • Power distance
    • Individualism
    • Masculinity
    • Uncertainty avoidance
    • Long-term orientation
    • Indulgence

Meyer's Model: Cross-Cultural Sensitivity

  • Canada's culture mapping, compared to Mexico and the United States.
    • Communication: High-context vs. Low-context
    • Evaluating: Direct negative feedback vs. Indirect negative feedback
    • Leading: Egalitarian vs. Hierarchical
    • Deciding: Consensual vs. Top-down
    • Trusting: Relationship-based vs. Task-based
    • Disagreeing: Confrontational vs. Avoids confrontation
    • Scheduling: Linear-time vs. Flexible-time
    • Persuading: Principles first vs. Applications first

Changes in Firms and Business Sectors

  • Changes to company ownership - mergers/acquisitions: huge impact on business; methods to lower costs, increase productivity.
  • Downsizing: eliminating positions/departments.
  • Outsourcing: eliminating departments and paying an outside vendor to produce the needed service, cheaper, due to specialization.
  • Offshoring: sending jobs overseas where labor, material costs may be lower; tradeoff in quality, customer resentment, H & S laws.
  • Downsizing and outsourcing:
    • Takes 18 months to see $ benefits post downsizing, “Survivor Syndrome”.
    • Sending jobs overseas, offshoring, is a form of outsourcing.

Diversity Challenges

  • Canada is a very diverse country.
    • Cultural
    • Gender
    • LGBTQ2+
    • Age
    • Ability
  • Note: in Canadian law there are employment Equity requirements (quota Hiring).
  • However, diversity isn’t legislated, it’s just good business practice.

Up to 5 Generations in the Workforce

  • Veterans: 1922-45 (over 70)
  • Baby Boomers: 46-64, largest in population, getting closer to retirement.
  • Gen X: 65-79, Tech-savvy.
  • Gen Y: 80-97, Device savvy, most stressed-out generation.
  • Gen Z: 98 plus likely a majority of you. Wired, risk-averse.

Diversity - Pros vs. Cons

  • Pros:
    • Attract & Retain Talent
    • Improved marketing
    • Improved creativity & innovation
    • Improved problem-solving
    • Increased flexibility
  • Cons:
    • Resistance to change
    • Lack of cohesiveness
    • Communication problems
    • Interpersonal conflict

White Collar Crime - It Began at Enron

  • Bernard Ebbers - WorldCom: 25 yr sentence for 1111 billion accounting fraud and cover-up.
  • (Lord) Conrad Black - Hollinger Int’l: served 4 yrs for obstruction of justice, tax evasion, and mail fraud.
  • Frank, Doug, & Mike from Nortel: numerous RCMP criminal charges, in an elaborate multi-billion $ fraud to mask falling Nortel sales; 60 employees lost their jobs.
  • Garth Drabinsky - Liveent Inc: financial irregularities, 7 yrs and 4040 million in damages.

Ethics, Character, and Integrity

  • Consequential: Consequences determine right vs. wrong; “Good” is the ultimate moral value.
  • Rule-based: An act is either good or bad; searches for universal moral values.
  • Character: The intent of the actor is good or bad; emphasizes virtues as motivators.

Current Ethical Challenges

  • Employee Rights
  • Sexual Harassment
  • Organizational Justice
  • Whistle Blowing
  • Corporate Social Responsibility

Ethical Dilemmas Facing Orgs Today

Employee Rights
  • With rights comes responsibilities.
  • Rights to privacy: related to technology, monitoring computer use.
  • Confidentiality: health diagnosis, hiring of employees who are ex-cons, violent offenders.
  • Drug testing, Security cameras, GPS systems.
  • Free speech, freedom of expression - tattoos, nose rings.
  • Downsizing/layoffs - Right to Due Process.
Sexual Harassment
  • Verbal or physical.
  • Three types:
    • Sexual Annoyance (gender harassment)
    • Sexual Coercion
    • Unwanted Sexual attention

Ethical Dilemmas Facing Orgs Today (Continued)

Organizational Justice
  • Distributive: fairness of outcomes.
  • Procedural: fairness of the processes the org uses to distribute resources.
  • Interactional: the way in which you treat, interact with an employee when dealing with a dilemma (not in the text).
Whistle Blowing
  • Employees who inform authorities of wrongdoings of the organization and/or its employees.
Social Responsibility
  • The obligations for the organization to behave in ethical ways.

The Four-Way Test

  • Of what we think, say, or do:
    1. Is it the TRUTH?
    2. Is it FAIR to all concerned?
    3. Will it build GOODWILL and better friendships?
    4. Will it be BENEFICIAL to all concerned?

Workplace Ethics: Company Code of Conduct

A Code of Ethics may define employees’ rights and responsibilities when:

  1. Handling confidential information
  2. Claiming other’s work as your own (plagiarizing), unexcused absences, deceiving others, or acting in an unprofessional manner
  3. Taking extended breaks, arriving late, leaving early, wasting the company’s time
  4. Falsifying information or documents
  5. Wasting resources
  6. Exaggerating on expense claims
  7. Using office equipment for personal use/copyright infringement
  8. Taking supplies home
  9. Harassing co-workers
  10. Cyber slacking
  11. Downloading office software

Challenges from Technological Innovation

  • Expert systems, robotics, and machine learning.
  • Proliferation of alternative work arrangements.
  • Impact of technological changes on our stress.
  • The impact of change due to technology and innovation.

Alternative Work Arrangements

  • Telecommuting: (Virtual work) Home office employees.
  • Satellite Offices: smaller workplaces, closer to employees’ homes, possibly in locations with lower expenses, suburban setting.
  • Flex schedules, Summer Hours, job-sharing, 4-day work week are also methods of offering employees options in how they work but are not related to Technology as the driving factor.

Technology Impact on Management/Employees

  • Take more frequent breaks; quite a change.
  • Avoid creating “workaholics” which result in burnout and long-term stress leaves.
  • Computer Monitoring allows management to truly quantify and qualify employee performance.
  • Effective Training is essential.
  • Reinvention: encouraging new uses for existing technology. Managers must lead organizations to adopt more technologies more humanely and effectively.
  • Employee isolation: issues with employee engagement, teamwork.
  • Many companies since COVID are recalling personnel back to the workplace.

Next Week

  • Week 3: Personality workshop.
  • Important lesson and necessary for your successful completion of your personality assignment due in June, as well as a component of questions on test #1.

Recap

  • Companies face many challenges, some present opportunities, some present threats.
  • Globalization allows for entering and expanding into new markets; however, considerations in cultural differences are imperative.
  • Cultural differences and work-related attitudes impact the workplace and help managers be aware of inherent behavioral differences between national-born and foreign-born employees.
  • Gender and sexual orientation diversity, age, varying abilities may benefit the workplace; however, may cause dilemmas that have to be addressed tactfully.
  • There is no excuse for immoral behavior in business; Ethics are essential.
  • Technology has also given us wonderful opportunities but also can threaten employees, especially those with high uncertainty.